‘How is this a matter of celebration?’: Chidambaram slams India-US ‘trade deal’, says it’s only a framework

Chidambaram argued that the language of the statement is so convoluted that, unless one scrutinises the numerous US executive orders it references, it is “not possible to understand the exact nature of the commitments undertaken by the US”.

He noted that India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of food and agricultural products, while the US will apply a reciprocal tariff of 18% on a broad swathe of Indian exports, including textiles, leather, organic chemicals and certain machinery, with removal of those tariffs contingent on the successful conclusion of the interim agreement.

He highlighted that an ongoing US trade investigation under Section 232 continues to loom over the pact. “How is this ‘framework for an Interim Agreement’ a matter of celebration?” he asked.

Former commerce minister Anand Sharma said the joint statement lacks clarity leaving key questions unanswered.

Sharma told The Indian Express, “I had asked several questions… whether India has committed to opening up its agriculture and dairy sector, offered zero duty access to the US on almost all products, including agriculture, in return for 18% tariffs, given a commitment to buy $500 billion worth of US goods in the next few years as claimed by President Donald Trump and compromised its sovereign freedom to trade, and committed not to buy Russian oil.”

“… To my utter surprise… there is a separate executive order on Russian oil… that India will not buy, and if India buys, they will reimpose tariffs and enhance it. What kind of trade deal is this? What about our sovereignty? And why is the government silent? Have we surrendered?” Sharma asked.

Congress General Secretary Jairam Ramesh said the framework commits India to cease Russian oil import, with the US indicating that a 25% penalty could be reimposed if India buys Russian oil directly or indirectly.

He contended that India will reduce import duties in ways that benefit US farmers but harm Indian farmers, and warned that India’s annual imports from the US will triple, effectively erasing the country’s long-standing goods trade surplus with Washington.

Alluding to the perceived political triumph portrayed by the government, Ramesh said that “all the hugs and photo-ops have not amounted to much. Namaste Trump has scored over Howdy Modi. Dost Dost Na Raha!”

In a post on X, Shiv Sena (UBT) MP Priyanka Chaturvedi said, “it’s an order not a deal”, and demanded a discussion on the matter in Parliament. “What all has been agreed upon besides not buying oil from Russia and Iran to get this deal? What other national interests have been negotiated for this?”